Effective Date: June 20, 2023
Last Reviewed: June 20, 2023
Purpose and scope:
The purpose of this policy is to establish policies and document the procedures for purchasing and paying for College goods and services.
POLICY:
The Purchasing and Payment Policy ensures:
- Budgetary control over College resources,
- Compliance with applicable federal, state and local government regulations
- The College receives maximum value for funds being expended
- Proper payment of College obligations
Purchases for goods and services are ordered by various purchasing methods. Prudent purchasing should always be used; price, quality, shipping, and service should all be considered.
Purchase Order Policy
Purchases less than $2,500 do not require a purchase order unless required by the vendor. The College recommends the use of the Stonehill Purchasing Card for purchases of goods and services with a value of less than $2,500. For information about obtaining a purchasing card please visit the Stonehill Accounts Payable Website.
Purchases over $2,500 may require a purchase order (if required by the vendor)). The Purchase Order is a primary ordering document for College purchasing activity. It is a formal written offer to a vendor or contractor containing all terms and conditions of a proposed transaction. Once accepted by a vendor, it becomes a legally binding contract between both parties. Purchase orders also create a budgetary commitment, which assists budget management.
Stonehill's purchase order system is automated and begins with the requisition form. Requisition details are entered into the system via Banner Self Service by individual departments. Only persons designated as budget approver may approve requisitions. Budget approvers are listed in the Signature Approval Authorization Policy maintained by the Finance Office.
After the requisition is approved, the Purchasing Office issues a purchase order to the selected vendor. A purchase order contains all the order information from the requisition and permits the vendor to process and ship the order. Purchase orders are forwarded to vendors on a daily basis. Copies of Purchase Orders will not be distributed back to the departments as departments can obtain Purchase Order information on-line from Banner Self Service.
Conflict of Interest Statement
Any vendor that has a relationship with the College or an employee of the College must disclose the relationship in a conflict of interest statement.
Categories Exempt from Purchase Orders
Certain categories are exempted from the purchase order requirement and bid policy. These include:
- Honoraria and fees for entertainers
- Investment management services
- Educational program expenditures (e.g., study abroad programs)
- Fringe-benefit related
- Taxes and payments to government agencies
- Legal and audit fees
- Professional services
- Membership fees and subscriptions
- Insurance
- Utilities
- Items covered by a formal contract, including vendors in Mass Higher Education Consortium, and E&I Cooperative Services
Purchase Order Changes
New or replacement Purchase Orders are not required for changes of less than 10% of the total order value.